DAN ROSTENKOWSKI, Illinois

Chairman

SAM GIBBONS, Florida

J.J. PICKLE, Texas

BILL ARCHER, Texas

PHILIP M. CRANE, Illinois

DANIEL PATRICK MOYNIHAN, New York
Vice Chairman

MAX BAUCUS, Montana

DAVID L. BOREN, Oklahoma

BOB PACKWOOD, Oregon

ROBERT DOLE, Kansas

HARRY L. GUTMAN, Chief of Staff

PETER V.Z. COBB, Deputy Chief of Staff

MARY M. SCHMITT, Associate Chief of Staff (Law)

BERNARD A. SCHMITT, Associate Chief of Staff (Revenue Analysis)

(II)

CONTENTS

INTRODUCTION

I. SUMMARY

II. ISSUES

III. OVERVIEW OF UNITED STATES TAXATION OF INTER-

NATIONAL TRADE AND INVESTMENT AND U.S. TAX

TREATIES

Page

1

2

10

14

Article 5. Permanent Establishment .......

Article 6. Income from Real Property (Immovable)

Property

Article 7. Business Profits

Article 8. Shipping and Air Transport

Article 9. Associated Enterprises

Article 10. Dividends

4 2 22222 72

23

25

14

17

20

28

31

31

32

Article 19. Pensions, Annuities, Alimony, and Child

Support

Article 20. Government Service

Article 21. Students, Trainees, Teachers, and Re-

44

44

49

52

54

(III)

Page

Article 26. Mutual Agreement Procedure

Article 27. Exchange of Information and Adminis

trative Assistance .......

55

56